Franklin County groups look forward to Small Games of Chance changes

For the past 25 years, fire companies, veterans groups and other nonprofit organizations have been operating under the state's Small Games of Chance legislation.

The idea was to bring order and fairness to the operation of various gambling activities used as fundraisers.

By all reports, the law had some holes and pitfalls; the Local Option Small Games of Chance Act was amended last year, with 222 lawmakers out of 238 in the House and Senate cheering it on.

Things got worse, at least on paper.

Gov. Tom Corbett, responding to cries of alarm from the nonprofit sector and others, put a hold on enforcement of the changes so lawmakers would have some time to tune it up.

Tom Thorne, manager and life member of the Veterans of Vietnam Wars Post on South Main Street, Chambersburg, is looking forward to seeing a better law.

"If (the new version) passes the Senate, it will be better than it was last week," he said, laughing. "It's not right. The way it is now, we only keep 30 percent of the money for use in the community. It's not enough. When we're doing the work to get it, it's a shame."

The new law made requirements for banking and accounting that made life more difficult for charitable organizations - not to mention more expensive - and reduced the portion of money gained from the gambling that could actually be used by the organizations.

The newly amended bill passed the House, 186-10, on Feb. 13.

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One of the amendments in the new bill was penned by Rep. Rob Kauffman, R-Chambersburg. As written, the amendment would increase the weekly prize limit from $25,000 to $35,000 for Small Games of Chance licensees.

He said once the law was amended last year, problems began cropping up right and left.

"It became quickly obvious that some parts of it were kind of awkward. The organizations had to give 70 percent to charity and 30 percent for operations. Along with some of the enforcement reporting requirements, it wasn't working well," Kauffman said. "The 30 percent rule wasn't cutting it. By raising the prize limits, we can help the clubs raise additional revenues."

The law before amendment was not clear on a number of items, a problem Kauffman believes the new version will repair.

"Some fire companies had been using games that they were not allowed to. When they discovered that, they asked that they be added," he said. "We've changed the split so that they can keep the first $40,000, and then the 70/30 split kicks in. And the requirement to keep records for at least five years has been reduced to two years, and they can file their reports on paper, not just electronically."

One big change will help nonprofits help one another, he added.

"Through interpretation or misinterpretation, clubs thought if they held an event along with another nonprofit organization, the limits would apply to both of them together. The revised law clears that up now it's clear that they would each have their own independent limit."

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